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Pension Expense and Liability On December 31, 2016, Robey Company accumulated the following information for 2016...

Pension Expense and Liability

On December 31, 2016, Robey Company accumulated the following information for 2016 in regard to its defined benefit pension plan:

Service cost $113,390
Interest cost on projected benefit obligation 11,810
Expected return on plan assets 11,250
Amortization of prior service cost 2,130

On its December 31, 2015, balance sheet, Robey had reported an accrued/prepaid pension cost liability of $14,100.

Required:

1. Compute the amount of Robey’s pension expense for 2016.
2. Prepare all the journal entries related to Robey’s pension plan for 2016 if it funds the pension plan in the amount of (a) $116,080, (b) $115,170, and (c) $119,920.
3. Next Level Assuming Robey’s beginning 2016 Accumulated Other Comprehensive Income: Prior Service Cost balance was $55,640 what would be its ending balance?
4. Next Level How much would Robey need to fund its pension plan for 2016 in order to report an accrued/ prepaid pension cost asset of $4,870 at the end of 2016?

General Journal

Assume Robey Company funds the pension plan in the amount of $116,080. Prepare the entries to record the pension expense for 2016 on December 31 and the amortized prior service cost for 2016 on December 31.

PAGE 1

GENERAL JOURNAL

DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT

1

2

3

4

Assume Robey Company funds the pension plan in the amount of $115,170. Prepare the entries to record the pension expense for 2016 on December 31 and the amortized prior service cost for 2016 on December 31.

PAGE 1

GENERAL JOURNAL

DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT

1

2

3

4

5

Assume Robey Company funds the pension plan in the amount of $119,920. Prepare the entries to record the pension expense for 2016 on December 31 and the amortized prior service cost for 2016 on December 31.

PAGE 1

GENERAL JOURNAL

DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT

1

2

3

4

5

Calculations

Compute the amount of Robey’s pension expense for 2016.

Next Level: Assuming Robey’s beginning 2016 Accumulated Other Comprehensive Income: Prior Service Cost balance was $55,640 what would be its ending balance?

How much would Robey need to fund its pension plan for 2016 in order to report an accrued/ prepaid pension cost asset of $4,870 at the end of 2016?

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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